A factor has agreed to purchase selected accounts receivable from Epic Company. The factor charged 5% commission and 20% holdback. The following accounts are sold on july 26:

On july 28, Customer B was granted a credit of 50,000 for returned merchandise. Final settlement is made with the factor on August 31.

Required:

Prepare journal entries to record the transactions on the book of Epic Company.

Invoice Date	Customer	Amount
July 23	A	300,000
July 25	B	500,000
July 24	C	200,000

Answer rating: 100% (QA)

First lets calculate the amounts that Epic Company will receive from the factor after considering th... View the full answer